Nike shares on pace to hit record high as $50 billion sales outlook tops expectations

The Nike emblem is seen on the Nike retailer on February 22, 2021 in New York City.

John Smith | Corbis News | Getty Images

Nike shares surged greater than 13% Friday morning, on pace to open at a record high, after the sneaker maker forecast full-year sales topping $50 billion as its North American enterprise rebounds from the lows of the pandemic.

And in Greater China sales seem to be bettering, with Nike administration saying the corporate is assured about its potential to regain belief with prospects there, amid threats to boycott Western manufacturers over their feedback expressing concern about alleged pressured labor in Xinjiang.

Globally, Nike is seeing customers splurge on new sneakers and fashion-forward sweat fits to put on as extra individuals start to socialize once more. The firm’s Jordan model has been a specific brilliant spot.

Nike, which has a market cap of greater than $211 billion, noticed its inventory hit an all-time high of $147.95 on Dec. 21.

Following Nike’s upbeat fiscal fourth-quarter outcomes on Thursday afternoon, Cowen & Co. analyst John Kernan raised his value goal to $181 from $145.

Kernan mentioned he sees a path for Nike’s market cap to sooner or later surpass $300 billion.

“Management’s confidence is hitting an inflection and Q4 results indicate the digitally driven acceleration in the financial model,” he mentioned in a observe to purchasers.

According to Telsey Advisory Group analyst Cristina Fernández, Nike is benefiting from its nearer connections with prospects via its membership program, increased full value promoting, higher use of information and a wiser wholesale mannequin with robust companions like Foot Locker.

Telsey raised its value goal on Nike shares to $180 from $160.

“The strong momentum in Nike’s brand globally is more than offsetting pressure in China and supply chain constraints,” Fernandez mentioned in a observe to purchasers.

At least 12 brokerages have already raised their value targets on Nike shares, following the corporate’s fiscal fourth-quarter launch.

According to FactSet, the median goal value of analysts who cowl the corporate is now $176.90.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *